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j;- <br />K' <br />P- <br />p' <br />'^1. <br />ji-’ <br />& <br />1- •■•'.. <br />f' <br />■ <br />112291.211 <br />\ <br />L TO: * <br />% <br />PR^t ' <br />DATE: <br />i j <br />^TtA-c tf4e?/r <br />Mayo^ City Council <br />Ron Mootse, City Administrator <br />Hovember 22, 1991 <br />SUBJECT: 1992 Wage and Insurance Adjustments <br />X- <br />The proposed 1992 wage and insurance adjustments are based on the <br />following criteria: <br />A. Wage Adjustment Criteria <br />1, Cost of living increase <br />a.) US consumer price index: annualized increase <br />from October *90 to October *91 is 2.9%. <br />b.) Minneapolis/St. Paul consumer price index: <br />annualized increase from the first half of <br />1990 to the first half of 1991 (July *90 to <br />July *91) is 3.1%. <br />2. Market comparison <br />a.) The average increase for 14 comparab. « cities <br />is 3%. <br />B. Insurance Contribution Adjustment Criteria <br />1. 1992 <br />coverage) <br />insurance premium increases (fami1 y <br />Pla'^ <br />1991 <br />Premium <br />1992 <br />Premium <br />Dollar <br />Difference <br />Percent <br />Difference <br />Group Health $321.46 $356.76 $35.30 11.0% <br />PHP/Medica $340.00 $399.50 $59.50 17.5% <br />Ned Centers $357.20 $389.35 $32.15 9.0% <br />A) The averagepremium increase is $42.32 per month. <br />B) 50% of the average increase amount is $21.16 per month * <br />C) The majority of staff are on PHP (presumably because it was <br />ifch# l#ast expensive alternative to Group Health)* The $59*50 per <br />month increase has now made PHP the highest cost plan. <br />STAFF RECOMMENDATION <br />The initial budget estimate for general salary increases was 3%. <br />The insurance contribution was not specifically estimated because <br />of the volatility of insurance rates in recent years. The city s <br />policy concerning annual insurance contribution adjustments has <br />to split the average increase on a 50/50 basis. This policy